Attorney General Kwame Raoul is standing at the forefront of a coalition comprising 23 attorneys general to buttress the federal Consumer Financial Protection Bureau (CFPB) amid attempts by the previous Trump administration and Elon Musk to halt its operations. Concerned by the directions to CFPB employees to cease working on cases probing companies for deceptive and abusive practices, the coalition submitted an amicus brief to the United States District Court for the District of Columbia arguing these actions could derail efforts that have returned over $20 billion to consumers wronged by various schemes. This intercession is the second such move this week by Raoul to protect the integrity of the consumer watchdog, according to the Illinois Attorney General's Office.
Raoul highlighted the CFPB's expanded role, which he argues to have become the primary national entity to rein in the kind of unfair and deceptive mortgage lending that precipitated the Great Recession. This is a critical moment where Raoul proudly aligns with fellow attorneys general to "oppose the illegal attempts to dismantle this critical watchdog," as stated by the Illinois Attorney General's Office. Their brief sagely hints the administration's efforts to disrupt the CFPB's operations could inhibit consumers from reporting fraud or deception, and significantly reduce oversight of major banks, potentially leading to a laxity in regulatory obedience reminiscent of the pre-crisis era.
The CFPB, known for its oversight of big banks, lenders, credit card companies, and mortgage servicers, ensures these entities comply with federal consumer protection laws. Its inception in 2011, in the wake of financial tumult, bore the responsibility of enforcing consumer protection at a federal level. The recent federal order, as of February 9, directed the CFPB to stop all ongoing work and not to begin any new investigations.
Together with state attorneys general, the CFPB has been instrumental in curbing deceptive, unfair, and abusive company practices. Raoul’s office, alongside six other states, brought legal action to halt an unlawful debt settlement ploy. Moreover, they have collaborated in taking companies like Navient and Nationstar Mortgage, also known as Mr. Cooper, to task for their deceptive student loan and mortgage servicing practices, the Illinois Attorney General's Office noted.
